9 minute read
Building a Better Business: A Mind for Sustainability
by i-SIGMA
By: Giorgio Spadoni & Giovanna Giulia Spadoni
Editor’s Introduction:
Adding sustainability into business operations is not a new concept. However, Talal Rafi, presently with Deloitte on their Global Team for Climate & Sustainability, recently recognized in a Forbes Business Council article that “Although 90% of executives think sustainability is important, only 60% of companies have a sustainability strategy. Often, companies that speak of being sustainable are lacking when it comes to implementation.”1* To aid in bridging this gap for companies in secure data destruction and records and information management, i-SIGMA Member Representatives, Giorgio & Giovanna Spadoni, of OMTRA S.r.l. Società Benefit (Milan, Italy) share their company’s own journey to delve proactively, more deeply into this space. While they are located in Europe, their story can be appreciated universally.
Environmental & Social Sustainability Integrated with Economic Results
First, I would like to frame the situation of our sector in Italy and in Europe. We have to admit that historically, our industry has been slow to lower its environmental impact. Disposal of documents, the shredding or burning of paper and mixed materials (paper, plastics, and metals), the throwing away of electronics, and so forth... These are all activities which require a certain cost, not only for our clients, but also for the Earth.
Only recently we have started to “wake up”, due to the rising costs of raw materials and processes, a lack of supply of some components such as microchips, and of course the effects of climate change, which become clearer day after day.
Today’s challenge is to match people, skills, and knowledge, so that our services and capabilities fit customers’ needs, desires, and expectations. As our customers grow and evolve, so must we, not only in terms of services offered, but also in terms of goals, philosophies, and engagement with the community and the environment.
For the last thirty years, we have made it our prime objective to get to know and understand our customers by attending conventions, conferences, and chamber of commerce meetings in various countries around the world.
What we have learned from these experiences has been that customers are now asking for much more than high-quality and impeccable service; that is, they are demanding adequate respect for and protection of the environment and people. This is not only coming from trend analysis or inside corporate boardrooms, but also in the questions and pressures placed at shareholder meetings, in meetings with customers and clients, and in the form of new types of annual financial reports that also include Environmental, Social, and Corporate Governance that evaluate a company’s practices and collective consciousness of social and environmental factors. Mainstream publications in the financial world such as Forbes 1 and in normal media, such as US News 2 have been full of stories about the critical importance of adopting ESG to maintain a company’s reputation and viability in the future.
These shifts concern not only the environment, but also social impact. As an example: at the 2019 annual meeting of the Swedish Chamber of Commerce in Italy, the CEO of the Italian subsidy of Elettrolux (a Swedish multinational home appliance manufacturer, consistently ranked the world’s second largest appliance maker by units sold, after Whirlpool) asked attendees what they plan to do in Italy for the homeless.
We believe that it is not enough to do “green/social washing” with minor changes to some business practices. We need a real, clear shift toward a circular economy and way of life, with attention to the social and environmental impacts of our business practices. All this is reflected in a more virtuous economic result.
B-Corp Movement & A New Way to do Business
Allow us to share about our secure data destruction, ITAD, and records & information management company, OMTRA S.r.l. Benefit Corporation, and its recent plunge into greater sustainable practices throughout our operations. Our sustainable evolution is nothing new. Over the last 65 years, we have given opportunities to people with disabilities and difficulties to work in our company. Over the last 20 years, we have led conferences about corporate social responsibility. Now, we are continuing to grow our commitment to social as well as environmental causes. Increasingly, we are counting NGOs, other benefit companies, and charities among our suppliers and customers.
Our company decided to implement radical sustainable solutions, starting with changes to our statutes and our corporate classification – from the Italian for-profit classification of a limited company “SRL” toward a “Benefit Corporation” (B-Corps) – which is reflected in a name change for the company, now OMTRA S.r.l. Benefit Corporation.
Italy was the first country outside the United States to introduce a law allowing the creation of dual-purpose companies –profit and positive social and environmental impact. OMTRA has not only carried out this step, but it is the first company in the sector and has started the process of measuring and verifying its performance with the certification body B-lab to obtain the B-Corp certification.
Facts about B-Corps:
• By the end of 2021, there were 4,602 B-Corps with a combined total income of more than 166 billion dollars.
• Together, they employ more than 438,000 people.
• During the difficult year of 2020, 55% hired new employees and 66% increased turnover.
• 38% of B-Corps are U.S.-based companies
• Benefit Corporations include companies such as:
o Danone
o The Body Shop
o Patagonia
o Bombas
o Aesop
o Illy Cafe
B-Corps can guide not only third sector actors in becoming more economically sustainable, but they can guide large corporations to become more socially and environmentally regenerative. For instance, in May 2020 Adidas and Allbirds announced a collaborative project aimed to accelerate solutions for reducing the industry’s alarming emissions numbers. The hope is they spur others to follow, scaling the innovation discoveries from 12-month collaboration, and not stopping until there is a total transformation of the economic model of the sector.
Why did we make this business shift?
After a full evaluation of our company and its activities, we decided to focus on three key points:
• Innovation
• Development
• Research
We started this process by creating a new team formed by the board of directors of the company with experience in information governance and secure shredding and with highly educated young professionals specialized in circular economy, chemical engineering, accounting, law, re-engineering of operations, and digital marketing. This has led to a natural evolution of our corporate values and identity.
While it may sound difficult, this solution isn’t complicated and isn’t foreign or European in origin. It was inspired by innovators from the U.S. and represents the next natural evolution in business, management, awareness, and corporate responsibility.
Make a System for a Multiplier Effect
As another way to give back, OMTRA is creating a new organization called “FILIERA”. Literally, this is the Italian word for a mechanical component called “spinneret”, but also the word in Italian for “supply chain” or “economy row”. We want it to be more than a simple network, for it to signify the creation of new assets, a new reality, in tune with making profit as well as improving quality of life.
This is a new vision of businesses working together toward a collective goal. However, this is nothing new. We’ve taken our inspiration from the American pioneers, the early settlers, the first groups of Protestant workers who understood the value of hard work, but also the value of community – by working together for a common goal, they achieved great things, all sustainably, locally, and in their own community.
In practical terms, this chain would unite B-Corps and NGOs together in an alliance to not just add our forces and strengths together, but rather to multiply them. Why are we doing this? Our idea is for all businesses with strong ethics and values, such as NGOs and volunteer organizations, to pool resources and work together. By offering services within this network and beyond, we can be useful for ourselves not only in terms of profit but also for the general population and the planet in terms of working together toward a positive future.
OMTRA for instance can offer new services such as to reuse, recycle, and recondition electronics such as computers, phones, and other IT equipment. With attention to social aspects, we would like to give this opportunity to people with learning or developmental difficulties to give them the chance to work and to contribute to society.
By offering services within this network and beyond, we can be useful for ourselves not only in terms of profit but also for the general population and the planet in terms of working together toward a positive future.
Editor’s Concluding Note:
Having seen just some of the practical steps that can be taken, in addition to the obvious ones already well known within the industry, perhaps inspiration will lead to action. Rafi concluded his own article with Forbes stating, “Economic, social and environmental sustainability is a must in today’s business environment.” But he didn’t end it there, “A corporate strategy focusing on sustainability can add brand value, meet consumer demands, increase efficiency, attract valuable talent, and create new opportunities. 1 * Find success as you do the good.
1 https://www.forbes.com/sites/ forbeshumanresourcescouncil/2022/02/16/ is-your-esg-program-reflective-of-yourcompanys-values/
2 https://money.usnews.com/investing/news/articles/what-is-an-esg-score
*Rafi, Talal. “Why Corporate Strategies Should Be Focused on Sustainability,” Forbes Business Council online. February 10, 2021. https://www. forbes.com/sites/forbesbusinesscouncil/2021/02/10/ why-corporate-strategies-should-be-focused-onsustainability/?sh=33123c0a7e9f
ABOUT THE AUTHOR
Giorgio Spadoni is the CEO of OMTRA S.r.l. Società Benefit
Reach him at g.spadoni@omtra.com.
ABOUT THE AUTHOR
Giovanna Giulia Spadoni is the General Manager and DPO of OMTRA S.r.l. Benefit Company
Reach her at giovanna.spadoni@omtra.com.
OMTRA, established in Milan in 1956, was the first to introduce Information Governance, Secure Destruction and Consulting Services for law firms, companies, and international governmental bodies in Italy. In 2021, after 65 years of promoting values related to the protection of the ecosystem and the community, it is one of the first Italian companies and the first in its Italian sector to be a certified Benefit Corporation.
